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Google Cloud and Saudi Arabia’s Public Investment Fund are taking a major step forward in their partnership by building and operating a global artificial intelligence hub in the Kingdom as part of a joint $10 billion investment. The project, which sits at the intersection of cloud computing, high-performance infrastructure and national digital strategy, is more than a headline-grabbing deal. It is emblematic of a wider transformation unfolding across the Middle East and North Africa, where data centers and AI infrastructure are rapidly becoming central pillars of economic policy and global tech competition.
Across the region, from Saudi Arabia’s expanding cloud infrastructure to Morocco’s emerging digital corridors, governments and global tech giants are racing to build the backbone of tomorrow’s digital economy. The result is a sector expanding at extraordinary speed, while increasingly positioning the MENA region as an ideal market for data center deployment.
The boom is visible everywhere. Microsoft and Abu Dhabi’s G42 last month announced a 200-megawatt expansion of data center capacity in the UAE, part of a staggering $15 billion long-term investment commitment. The rollout, to be delivered through Khazna Data Centers, is expected to begin coming online before the end of next year, a concrete example of how quickly infrastructure is being deployed in the region.
Today, the UAE and Saudi Arabia are leading the race, with 56 and 43 operating data centers, respectively, according to Data Center Map. The Kingdom has more than 40 additional facilities under construction, while the futuristic city of Neom is preparing a 12-megawatt site. Riyadh aims to surpass 1,300 MW of capacity by 2030, driven by Vision 2030 and aggressive investment in AI and digital infrastructure.
The UAE continues to hold the region’s largest IT power capacity, supported by modern and scalable electricity networks and fast energy deployment. Its position as a bridge between Europe, Africa and Asia further reinforces its appeal for hyperscalers.
Elsewhere in the region, growth is accelerating. Morocco’s data center market is projected to reach $474 million by 2030, boosted by the newly announced 500 MW Igoudar Dakhla AI data center, one of Africa’s most ambitious green-powered digital projects. Casablanca’s Orange Tech facility is another key investment, supporting local cloud services and digital sovereignty efforts.
The broader Middle East already hosts 283 data centers across 17 countries and the market is expected to double by 2030. Across the region, more than 1 gigawatt of capacity has already been installed, with an additional 4.5 GW expected by 2027, representing about $12 billion in new investments.
This infrastructure build-out matters because data centers now lie at the heart of the global digital economy. They store, manage and process the world’s exploding data volumes, which reached 149 zettabytes in 2024, four times higher than in 2019.
Data centers power e-commerce, fintech platforms, cloud computing, AI systems, national cybersecurity frameworks, logistics networks and digital public services. With demand for generative AI accelerating, the need for high-density, high-efficiency data centers has become unprecedented.
For the MENA region, this translates into multiple strategic advantages. In fact, sovereign cloud capabilities enhance digital resilience and give governments more control over sensitive data. Local hosting reduces latency for regional businesses and supports the expansion of fintech, health technologies, media and other high-growth sectors.
The presence of major international providers, whether Microsoft, Google, Amazon Web Services or regional champions such as Khazna, also attracts additional foreign investment, as companies increasingly require local infrastructure for regulatory, performance and security reasons.
At the same time, energy-efficient digital ecosystems such as Qatar’s smart city projects, which have already cut energy use by 30 percent in Msheireb Downtown Doha, show that the region can align data growth with sustainability goals.
Despite this momentum, the sector faces limitations that could slow its trajectory if not addressed. Skilled talent remains in short supply globally and the MENA region is not immune to this challenge, though countries such as the UAE and Saudi Arabia have adopted aggressive strategies to attract international expertise.
Regulatory frameworks around cloud computing and data governance are evolving but remain uneven and they will need to strike a delicate balance between protecting data sovereignty and enabling competitive, efficient cloud markets.
The sector is expanding at extraordinary speed, increasingly positioning MENA as an ideal market for data center deployment.
Zaid M. Belbagi
Power availability, a growing constraint worldwide, is another pressure point. Although the region benefits from abundant energy resources, the cooling requirements of data centers, especially in Gulf climates, demand long-term planning, integrated infrastructure and sustainable energy models. In Saudi Arabia, for example, their development is increasingly tied to large-scale projects such as desalination facilities that can support both digital expansion and national infrastructure goals.
Despite all the challenges, the outlook for the sector remains overwhelmingly positive. Regional visions such as Saudi Arabia’s Vision 2030, UAE Vision 2031, Digital Oman 2030 and Qatar National Vision 2030 place digital capability at the core of economic transformation strategies. Global demand for data centers is expected to increase up to eightfold in the next five years and new market entrants, from global hyperscalers to real estate-backed operators, are rushing to capture this growth. For investors, the opportunity lies in scarcity: facilities that can secure reliable power, attract talent and scale AI workloads will command a premium in a market where demand is outpacing supply.
Looking ahead, the expansion of data center infrastructure marks the beginning of a new chapter for MENA economies. What started as selective cloud investments is evolving into a structural shift that strengthens digital resilience and positions the region as a global digital crossroads. If current plans materialize, MENA could emerge as an architect of the global digital economy, where data, powered by resilient and intelligent infrastructure, becomes one of the region’s most valuable economic assets.
- Zaid M. Belbagi is a political commentator and an adviser to private clients between London and the Gulf Cooperation Council. X: @Moulay_Zaid